What you buy will help you fly

kulula.com, South African low-fare airline, today introduced their latest innovation and a brand new concept in credit cards and airline rewards: the kulula.com VISA backed credit card. kulula.com fans will earn kulula 'moolah' on all their purchases, which matches real currency rand for rand. kulula moolah can be used towards any available flight on the airline. The card has a unique green hologram design that is guaranteed to help you impress your friends.

Gidon Novick the airline's Joint CEO explains, "The kulula card is three times more generous than any other program around and rewards can be used on any flight, any time." If you're spending approximately R5 000 on your credit card every month, in six months you'll have qualified for a free return flight between Jo'burg and Cape Town.

With the kulula card, fans won't wait for ages to earn a free flight, any amount of kulula moolah can be put towards a flight. Fans will earn as much as 3% on all purchases credit card.

Credit card customers will also benefit from lower interest rates. For the first six months after acquiring the card, the interest rate will be only 5%. kulula.com is concerned about the financial well-being of its customers, and emphasizes the importance of responsible shopping with it's 'shop responsibly' initiative, "We'll encourage our customers to shop responsibly and have a section on our website dedicated to educating and assisting them in managing their debt and minimising the potential negative effects of borrowing too much," says Novick.

A strategic partnership with FirstRand Bank and VISA ensures that the kulula.com credit card can be used at more than 22 million merchants world-wide. "We are proud to be a part of this great new concept – the credit card market has become very competitive and we've come up with a credit card that will be difficult to beat," says Jan Kleynhans, CEO of FNB Card Division.

Customers can apply for a kulula.com credit card on-line at www.kulula.com or by calling 0860 MOOLAH (666524).

Buy bye!

Note to editors

Herewith an example of how to earn and use your kulula moolah:

Earning kulula moolah

kulula moolah earning on general spend monthly:

Monthly spend

kulula moolah earning

R0 - R5 000

3%

R5 001 - R10 000

2%

R10 000 - R20 000

1%

kulula moolah earning on kulula flights:

An extra 3% on all kulula flights paid for with your kulula card

Monthly spend

Shoes

R600

Toiletries

R450

CD's

R420

kulula flights

R1 000

Groceries

R1 200

Clothes

R600

Toys (mmm)

R500

Total:

R4 770

kulula moolah earned on the above purchases.

kulula moolah on purchases

R4 770

x 3%

R143,10

Bonus kulula moolah on kulula flights

R1 000

x 3%

R30

Total kulula moolah earned per month

R173,10

Over 6 months: R173,10 x 6 = R1038,60

using your kulula moolah

Assume you choose 1 return flight at a cost of R1,000 including airport taxes, your flight will be totally free.

Assume you choose 2 return flights and the total for the flights is R2 000, you deduct your R1038,60 worth of kulula moolah and only end up paying R961,40 for the 2 flights.

Potential story angles

The launch of kulula.com's credit card is more than just a new product announcement. To demonstrate some of the angles that could be pursued further, we have outlined a few potential topics below. Please contact either Glenda Zvenyika at kulula.com or Alice Jordan at Atmosphere on the numbers below if you'd like further info on any of these angles, or if you'd like to set up an interview with Gidon Novick, joint CEO of kulula.com.

1. Use your kulula credit card the right way and save money

Responsible credit use is the name of the game says kulula.com. Using a credit card that suits your financial situation and lifestyle wisely, can make a difference in your personal finances. If you always pay your balance in full and have a reward program that gives you benefits, you can actually make money from your credit card. Some tips brought to you by kulula.com in the name of responsible shopping:

pay the monthly installment before the due date

allow enough time for your payment to reach your credit card company. If you don't, you may end up making a late payment that could mean you will be paying more interest. This could also negatively affect your credit history.

take cash advances only when absolutely necessary

check your statement and immediately report any discrepancy to your credit card company

earn kulula moolah for every credit card purchase as what you buy will help you fly

2. Credit card jargon

You've heard all the banking speak - but what does it really mean? Not only is kulula encouraging you to use your credit card wisely - and offering the opportunity to fly to wonderful destinations - but we've further simplified things, by going the jargon buster route. So what does the following mean?

In South Africa's dynamic and growing economy, only the fittest survive. Brands constantly have to reinvent themselves to stay ahead of the game - improving their service or product offers to kick dust in the eyes of the competition, or even expanding into new directions to ensure their customers stay loyal to their brand. Following the success of low-cost airline kulula.com's expansion into the car rental and accommodation arena, we've just launched a benefits-linked credit card - a totally new direction for this company. Why this change?

We all want brands that we can't necessary afford. And in an effort to keep up with Jones and the Khumalos South Africans have the increased potential to fall into the growing debt trap. kulula.com recently launched a rewards-based credit card and at this stage we're a lone voice in the dark - with a call on consumers to steer away from excess and to focus on responsible shopping. This call is supported by a toll free number (0860 MOOLAH) and practical advice on how to manage your credit card available on www.kulula.com

5. Comparing reward programmes - how do they shape up?

Following on the international trend to award customer loyalty, several major airlines in the SA market now offer rewards programmes where customers earn points or miles to redeem on air tickets. But how do the options compare? And what is the catch? For example, SAA's Voyager programme is currently linked to a Standard Bank credit card, but may soon be offering its own programme. kulula.com stays true to their payoff line (Now anyone can fly) by offering their rewards linked to the new kulula credit card - with consumers earning 'kulula moolah' on every rand spent and being able to easily redeem these rewards.

6. So what's the difference between a loyalty card and a credit card?

In the virtual world banking, some credit cards offer loyalty points or rewards and some loyalty cards are linked to credit cards. But what is the difference? And how can you differentiate between the two at a glance? kulula.com has recently launched its own rewards-based credit card that offers you 'kulula moolah', which can be redeemed on any kulula flights, in return for all spend on their Visa card. Gidon Novick, joint CEO of kulula.com, offers an insight into the two concepts.

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